FLORIDA NON WARRANTABLE CONDO LENDERS OVERVIEW
- All non-warrantable issues considered
- High investor concentration
- Large, single entity ownership
- High commercial percentage
- Small projects with no HOAs
- Condo conversions
- New developments
- Max 80% LTV (primary or second home)
- Max 60% LTV (investment properties)
- Maximum loan amounts up to $3,000,000 (LTV limits apply)
- Cash-out refinancing available to $1,500,000 cash in hand
Thinking about buying a condominium in NON-Warrantable Florida? The first thing you will need to determine is whether you are buying a “warrantable” or “non– warrantable”NON-Warrantable FL Florida condo.
FLORIDA NON WARRANTABLE MORTGAGE LENDERS TERMS
The ARM is a 1st mortgage adjustable rate loan with principal and interest payments amortized over 30 years.
- 30 Year fixed for 30 years.
FLORIDA NON WARRANTABLE MORTGAGE LENDERS SUMMARY
- Up to 80% LTV
- Credit scores as low as 680
- Loans up to $3 million
- Up to 100% investor concentration
- New construction: minimum 25% sold & closed
- Up to 50% DTI
- High and low-rise condos acceptable
- Owner-occupied, second homes, and investment properties
- No MI required
- Reserves required
FLORIDA NON WARRANTABLE CONDO MORTGAGE
Property Considerations NON Warrantable Florida Accessory Units
NON Warrantable Florida Properties with accessory units, also known as Granny units, mother-in-law suites, etc., may be
acceptable if all of the following are met:
•NON Warrantable Florida Property is typical, readily-acceptable, and common in the subject’s market area
•NON Warrantable Florida Property must conform to all zoning laws and/or regulations
• NON Warrantable FloridaAppraisal contains two (2) comparables with similar additional accessory units
• NON Warrantable Florida Accessory unit is substantially smaller than the primary dwelling
• Legal non-conforming use may be acceptable provided its current use does not adversely affect value
and marketability
• Any rental income received from the accessory unit may not be used for qualifying
• Existence of the unit must not jeopardize any future hazard insurance claim that may need to be filed
for the property
FLORIDA NON WARRANTABLE GENERAL CONDO REQUIREMENTS
Condominium Requirements - In general All condominium transactions must have a completed Homeowners’ Association (HOA) Certification and a
valid project approval. The HOA certification may not be greater than 90-days old at the time of closing. All condominium projects must meet the following requirements: LTV’s and/or Condo Presale
Requirements HOA Reserve Requirements Condo’s less than 90% closed and sold ≥10% of the annual budget > 80% ≥10% of the annual budget 80% - 70% ≥5% of the annual budget
<70% No reserve accounts required
• The sustainability, marketability and financial stability of the Florida non warrantable condo project must be supported.
• The project must be located in an area where acceptability of condominium ownership is
demonstrated.
• The Florida non warrantable condo project must be in compliance with all applicable state or local laws. The homeowners’
association must be incorporated in the state in which the project is located.
• Condo projects must have acceptable insurance coverage.
• All common areas and amenities within the project or subject phase must be complete.
• Subject Florida non warrantable condo unit must have at least 600 square feet of living space.
• HOA Delinquency (maximum): 15% of the units; and
• Annual Budget Dollar Delinquency (maximum): 10%
• No more than 30% of the Florida non warrantable condo total square footage of the project may be used for commercial purposes.
• No single Florida non warrantable condo entity, the same individual, investor group, partnership, or corporation may own more than
10% of the total units in the project. In the case of a project that has fewer than ten units, no single
entity may own more than one (1) unit.
• Investor Concentration (maximum): 100%
• Florida non warrantable condo Projects with pending or threatened litigation are typically ineligible. Litigation may be acceptable if it
is determined to be minor and immaterial. Details of the litigation must be submitted with project
review documentation to determine acceptability. An environmental hazard assessment is required
for condo projects if an environmental problem is identified by the originator or Loan Purchaser
through performance of its project underwriting or due diligence. The solution to the problem must
be deemed acceptable by Angel Oak.
• The Florida non warrantable condo project must be located on one contiguous parcel of land. The project may be divided by a public
street.
• The Florida non warrantable condo structures within the project must be within a reasonable distance from each other. Common
elements and facilities, such as recreational facilities and parking, must be consistent with the nature
of the project and competitive in the marketplace.
• All Florida non warrantable condo programs are limited to a maximum number of units purchased by Loan Purchaser within one
project of 20% or 20 loans, whichever is less.
FLORIDA NON WARRANTABLE CONDO CONVERSIONS
A condominium conversion is the conversion of an existing building to a condominium project. Project
conversions legally created in the past three years are not allowed.
FLORIDA NON WARRANTABLE CONDO INSURANCE
Earthquake Insurance Analysis, FHLMC Form 465S, must be completed when subject property is located in
California. Earthquake insurance is required for projects located in “moderate” or “high” risk zip codes.
Obtain a copy of the Site-Specific Earthquake Risk Analysis (SSERA) from the condominium project
association.
FLORIDA NON WARRANTABLE CONDO INELIGIBLE PROJECTS
• Florida non warrantable Projects comprised of manufactured homes
• Florida non warrantable Projects managed and operated as a hotel or motel
• Florida non warrantable Projects containing the word hotel or motel in the name
• Florida non warrantable Projects with registration services or that offer rental of units on a daily basis
• Florida non warrantable Projects that restrict the owner’s ability to occupy the unit
• Florida non warrantable Projects with mandatory rental pooling agreements that require unit owners to either rent their units
or give a management firm control over unit occupancy
• Florida non warrantable Projects with non-incidental business operations owned or operated by the homeowners’ association
(such as a restaurant, spa, health club, etc.)
• Common interest apartments
• Florida non warrantable Timeshare or segmented ownership projects
• Florida non warrantable Multi-unit dwelling condos that permit an owner to hold title to more than one dwelling unit, with
ownership of all of his or her owned units evidenced by a single deed and financed by a single
mortgage.
FLORIDA NON WARRANTABLE CONDO NEW PROJECTS
• 90% Sold and Closed: No restrictions
• Foreign Nationals and Investor Cash Flow borrowers must meet this requirement
• <25% Sold and Closed: Not eligible
• ≥ 25% - 89% Sold and Closed: Maximum concentration for Angel Oak is 5% and maximum LTV is
reduce by 10%
FLORIDA NON WARRANTABLE SITE CONDOMINIUMS
Projects consisting of single-family detached dwellings (also known as site condominiums) are
acceptable provided the appraisal supports market acceptance of site condominiums in the subject’s
market area.
• SFD or Condo appraisal forms are acceptable
www.Florida-Mortgage-Lenders.com
Please find attached the following Information requested in regards to our Florida Condo loans. Keep in mind that we do Non-Warrantable Condos. (No longer required to be FNMA warrantable)
- Non-Warrantable Florida Condo Lenders / Rate Sheet.
- Pre-Qual Form.
- Florida Mortgage Lenders.com Wholesale Condo Questionnaire. (Attachment
(To save you some time, send me name of the Non-Warrantable Condo Development, physical address, any issues of the Development and I will send to our Corporate Office to see if Acceptable?)
Non-Prime Program:
- 24 Month Self Employed Bank Statement Program
(Perfect for ALL that Write-Off Everything!)
- Non-Warrantable Condos. (No longer required to be FNMA warrantable)
- Use middle FICO score of Primary Borrower.
- Cash out up to $500,000, Loan Amounts to $1 Million.
- Scores Starting at 500, 80% LTV’s as low as 580 Score and up to 50% DTI.
- 12 Month Seasoning on BK, Foreclosure, Short Sale and Deed-In-Lieu.
- Rates have Dropped as LOW AS 7.49%.
- Recent Housing Event Program:
1 Day out of Foreclosure, Short Sale and Deed-In-Lieu, No Seasoning.
- No Seasoning of BK if Mortgage Included, otherwise 12 Months Seasoning for Primary Residence, 2nd Home 24 Months.
- Non-Warrantable Condos. (No longer required to be FNMA warrantable)
- Use middle FICO score of Primary Borrower.
- Cash out up to $500,000, Loan Amounts to $1 Million.
- Scores Starting at 500, 80% LTV’s as low as 580 Score and up to 50% DTI.
- Jumbo Loans, O/O, Condo’s, 2nd Homes, Bank Statements and Non-Permanent Resident Aliens Allowed.
- Rates have Dropped as LOW AS 7.99%.
Investment Property Program:
- 1 Day out of Foreclosure, Short Sale and Deed-In-Lieu, No Seasoning.
- No Seasoning of BK if Mortgage Included, otherwise 12 Months Seasoning.
- 5 properties with AOF or a total of 20 properties regardless of the Lender.
- Properties in LLC OK, Individual must be on the Note, LLC will be on Title.
- Cash out up to $500,000, Loan Amounts to $1 Million.
- Foreign National, Max 65% LTV,Scores down to 560, Funds Seasoned for 60 days, 30 days seasoning in U.S. Depository Institution, Very Few Country Restrictions,
FLORIDA CONDO LENDERS
• 100 % VA Condo Mortgage Loans Down to a 550 fico!
• 96.5% LTV on FHA Approved Owner Occupied Condos= 3.5% Downpayment!
• 95% LTV on Owner Occupied Condos= 5% Downpayment!
• 90% LTV on Second Home Condos= 10% Downpayment!
• 80% LTV on Second Home Condos= 20% Downpayment
• 80% LTV on Investment Condos= 20% Downpayment.
• 75-80% LTV on Florida Non Warrantable Condos + Condotels.
LINK-FLORIDA CONDO ASSOCIATION WORK SHEET LINK CHEAT SHEET
Non-warrantable Condo Approvals!!
- Up to 80% LTV
- At least 30% of complex owner occupied
- Condo litigation considered
- Structural issues must be resolved and litigation is to recoup funds
- Commercial influence exceeding FNMA limits considered
In comes the Florida VA mortgage to the rescue for Condo Buyers and current Florida Condo homeowners. To qualify for a Florida VA Mortgage the Florida condo must be on the VA Approved Condo list, which includes many existing complexes. You can search for VA Approved Condos yourself, or let us assist you,we are here to help.
15, 20 and 30 year fixed rate terms available!
Florida Condominium Lenders - Florida Condo Loans
www.Florida-Mortgage-Lenders.com
What is a Non Warrantable Condo? A Non Warrantable condo means the condo complex in question does not meet the minimum risk exposure standards of of FHA, VA, or Fannie Mae.
Components of A Warrantable Condo include:
• Most of the Condo units are owner occupied or second homes.
• No More than 15% or less of the condo units are more than 30 days delinquent on HOA dues.
• No more than 10% of a Condo project can be owned by a single person or entity.
• No more than 20% of the Condo project can consist of non-residential space.
• On established and existing Florida Condo projects, at least 90% of the condo must be sold.
• For new and currently converted construction, 70% of the units must be pre-sold
• Florida HOA's must have at least 10% of its budgeted income designated for reserves
• Adequate insurance coverage for liability, fidelity, and a master policy for building
• HOA budget review
How do you know if your Florida condo purhcase is warrantable?
Step 1 try these 3 warrantable condo links!
- Check Florida FHA approved Condo list- Click Here.
- Check Florida VA approved Condo list- Click Here.
- Check Florida Fannie Mae Approved Condos-Click Here.
Step 2- Get a Florida Condo Questionairre Filled out. Or Ask the assocaition if the condo complex in question is warrantable.
FLORIDA CONDO MORTGAGE LENDERS
Florida condo mortgage applicants will find that a mortgage on a Condo is more complex than purchasing a single family or town-home or villa. There are additional requirements for Florida condo associations that do not exist in other typical Florida mortgage transactions. The Condo must be approved by the Florida mortgage lender via condo association questionnaire before you can get financing on a Florida condo.
MANY FLORIDA MORTAGE LENDERS WILL NOT MORTGAGE FLORIDA CONDOMINUMS
Having trouble getting a Florida condo mortgage because the condo you are interested in is being denied by your Florida mortgage lender? Florida mortgage lenders.com offers condominium mortgage loans on many Florida condos projects that are not Fannie Mae approved and which other Florida mortgage lenders consider not financeable. Conditions include the Florida mortgage applicant must:
1. The Florida condo purchase must be a primary residence = 25% down payment for a purchase or 25% equity for a refinance.
2. 2nd Florida condo home loan transactions require a minimum 30% down payment for purchase and 30% equity in the Florida condo for a refinance.
Our expanded Florida mortgage approvals for condos require no condo questionnaire, no review of the association budget and no approval of the project reserves. It may seem counter-intuitive, but no matter how strong you may be as a Florida mortgage applicant, or what the down-payment/Loan-to-Value is; most Florida mortgage lenders will not mortgage Florida condos if they fail even basic criteria of a condo questionnaire. Details of most denials include: pending litigation in the project, low % of owner-occupancy, high % of current condo owners late on their HOA fees are just a few reasons that will kill your Florida condo mortgage. It is very risky to attempt to secure financing with Florida mortgage lenders that require Condominium questionnaire approval. A result of the Florida housing market crash is that most Florida condo projects have some of the aforementioned issues. The safe and easy path to a smooth Florida mortgage process is to work through one of the very limited number of Florida mortgage lenders that do not require Florida condo questionnaire approval.
Florida Mortgage Lenders.com is one of only a very small number of limited Lenders with Access to the Florida mortgage lenders that do not require a Florida condo questionnaire that offer these programs.
QUESTIONS TO ASK THE FLORIDA CONDO ASSOCIATION:
1. Is the Florida condo project Fannie Mae or FHA Approved? If the answer is yes, then you may proceed as long as the Florida Condo is not on the Florida mortgage lender’sunbendable list (Yes, this is still possible even if a Florida condo project is Fannie Mae approved). It is important to note that some phases within a Florida condo project may be approved while others may not. This is a common mistake that can blow up many deals.
2. Am I eligible for a Florida condo Project Review Waiver? (Also called a Limited Review) Primary Florida condo purchases with a 25% down payment/equity. Second Florida condo home transactions with a 30% down payment/equity. Investment Properties are not eligible. Beware of lenders offering “Limited Review” of a condo but requiring a Condo Questionnaire. If a condo questionnaire is required, then it is not a limited review and you risk your loan being denied for factors not related to your individual credit worthiness. Check that your Condo is not on the lender’s list of denied projects. The Government Homeowner Assistance Program = HARP will allow you to refinance up to 125% of your home’s value if your Loan is owned by Fannie Mae or Freddie Mac. There is no project approval for these programs.
3. Can I get an Florida FHA mortgage in a Florida Condo that is not FHA Approved? No. Currently FHA and lenders are not allowing spot reviews of condos for FHA Loans. You should check which Condos in the area you are interested in buying are already FHA approved if you are interested in a low down payment FHA loan.
4. What is the minimum down-payment for a Condo Loan? For purchases, typically the minimum down payment is 20%. We encourage that you put more money down so that we can waive the project approval requirements. 25%- Owner Occupied. 30%- Second Home. If the project is FHA approved, you can purchase a primary residence with a 3.5% down-payment. For Refis, if the loan is eligible for HARP- Government Homeowner Assistance Programs- Then it is possible to get a condo home loan for up to 125% of the home’s value.
FLORIDA CONDOMINUM MORTGAGE REQUIRMENTS
Florida Mortgage lenders have requirements for condo financing.
Mortgaging a Florida condominium comes with a few more requirements than a standard Florida mortgage. Condominiums are mostly part of a condo association and the reputation of that association can affect a Florida mortgage applicants chances of obtaining condo financing. Due to the number of association delinquencies many Florida mortgage lenders have raised their requirements for financing when purchasing Florida condominiums. Large down payments usually between 20-30%, association questionnaire approvals and inspections approved directly by the Florida mortgage lender are some of the requirements that Florida condo buyers must meet before they obtain a loan for a Florida condominium.
FLORIDA CONDO ASSOCIATION FEES
Living in a Florida condominium complex usually requires the unit owners to pay association fees. Most Florida mortgage companies can now refuse financing if 15 percent or more of the residents are 30 days or more behind on their association dues. Delinquency rates in dues worries Florida mortgage lenders because it casts doubt on the association's cash reserves and financial status.
New Florida condominium units and complexes have a minimum criterion of sold units to meet. Most Florida Mortgage Lenders now want to see at least 49 percent of the units sold or under contract before they will agree to financing.
FLORIDA CONDO INSPECTIONS
o Condominium inspections usally take place before the Florida mortgage applicant apply for condo financing.. However, all Fannie Mae-backed Florida mortgages for condos will have to undergo an inspection by a Fannie Mae representative. This includes the complex as well as an investigation into the association's financial situation. Previously, Florida condominium inspections were carried out but by the individual Florida mortgage lender.
FLORIDA CONDOS LOANS REQUIRE LARGER DOWNPAYMENT
Mortgage insurance (MI) companies are currently not providing private mortgage insurance in Florida due to the large number of defaults. As a result Florida condo mortgage applicants are required to put down a minimum 20 percent down payment.
Florida-Mortgage-Lenders.com offers FHA, VA, Conventional, USDA, Condo, Non Warrantable Condo, Investment & Condotel (Condo Hotel) Financing for every city and county in Florida including.